Since 1958, the average weekly wage of a US factory worker has more than tripled, reaching a record $94.24 in June, according to the US Department of Labor. Adjusted for inflation, that’s around $1,080 in today’s dollars.
A Tale of Two Economies
As I, a boomer, look back on the past 65 years, it’s clear that wealth has grown substantially – but it’s shared far less equitably. The top 1% of earners now hold nearly a quarter of the country’s wealth, while the bottom 90% see a fraction of the gains. This widening wealth gap has significant implications for the economy and society as a whole.
The 1950s and 60s saw a period of unprecedented economic growth, driven in part by the post-war boom and the rise of the middle class. As manufacturing and industry took off, wages rose and living standards improved. The average weekly wage of a factory worker more than tripled between 1958 and 2023.
The Rise of Income Inequality
However, this growth came at a cost. The wealth gap began to widen in the 1970s and 80s, as automation and globalization took hold. The decline of traditional manufacturing jobs and the rise of the service sector led to a shift in the nature of work and the distribution of wealth.
Today, the top 1% of earners hold an disproportionate share of the country’s wealth, while the bottom 90% see a fraction of the gains. This has significant implications for economic mobility and social cohesion. As the wealth gap widens, so too does the divide between the haves and the have-nots.
What This Means
The growth of wealth over the past 65 years is a complex and multifaceted phenomenon. While it’s clear that economic growth has lifted many out of poverty, it’s also created new challenges and inequalities. As we look to the future, it’s essential that policymakers and business leaders prioritize economic equity and fairness, ensuring that the benefits of growth are shared more broadly across society.
